Inside Asian Gaming

a mere 9,300 workers out of an estimated workforce of 293,300 were without jobs. The run rate of employment has continued to track lower, driven largely by increased re- cruitment in the casino industry.The remain- ing unemployed are so lacking in skills as to be virtually unemployable. With every gaming table needing 10–12 staff, we estimate that there are over 20,000 dealers currently hired in Macau. We esti- mate that with a further 5,500 tables open- ing, there would be potential demand for a further 55,000 dealers in the market by 2010. This excludes general service and hospitality staff, which we estimate could add demand for a further 40-50,000. We expect that over 100,000 new employees (over a third of the current workforce) could be required by 2010 as the new casinos open. With the ever-increasing demand for staff in Macau, it is of little surprise that sev- eral casinos are complaining about staff be- ing poached. Anecdotal evidence suggests that some casinos are giving incentives such as free healthcare to the parents and families of the dealers in an effort to recruit. With the tight labour market, the reli- ance of the Macanese government on gam- ing revenues and the significant investment being made by gaming operators, we be- lieve that a change in government policy is inevitable. This should further be the case given recent citizen protests regarding work conditions in Macau. These changes would be a significant positive driver of sentiment for the sector. Average daily wages of construction workers Source: Macau census service, Macquarie Research, June 2007 Average monthly wages of dealers Source: Macau census service, Macquarie Research, June 2007 Macau’s labour force at ~ 100% participation rate Source: Macau census service, Macquarie Research, June 2007 13